As credit unions continue to invest more in digital, some assume that cash is fading in relevance. However, transaction data tells a different story. Cash usage remains steady; it's access that's becoming uneven.
Recent research from NCR Atleos, based on activity across one of the largest independently-owned ATM networks in the U.S., shows that demand for cash hasn't meaningfully declined. Instead, the data points to a growing imbalance: Consumers in low- to moderate-income communities rely more heavily on cash but often have fewer access points available to them.
An analysis of 20 metropolitan areas revealed that ATMs in lower-income neighborhoods processed 38% more transactions per machine than those in more affluent areas, despite the more affluent communities having roughly twice as many machines. Notably, average withdrawal amounts remain consistent across income groups, underscoring that the issue is not how much cash consumers need, but how easily they can access it. For credit unions, that distinction matters.
Access, Not Usage, Is the Emerging Gap
Federal Reserve research reinforces that cash continues to play an important role in everyday financial activity, particularly for smaller purchases and budgeting. Consumers also continue to rely on cash as a dependable fallback when digital channels are unavailable or inconvenient. Even among consumers who prefer digital payments, cash remains widely used; nearly two-thirds of cash transactions are made by people who would otherwise choose another payment method. This data demonstrates that cash usage has remained steady, but access has become more uneven.
This matters as credit unions continue to evolve their branch strategies and invest more heavily in digital channels. Consumers are increasingly relying on self-service access points to meet everyday needs, and the Atleos data reflects that shift directly. ATMs are handling more transactions per device and higher withdrawal volumes, reinforcing that these machines continue to serve as a core part of the financial ecosystem, especially in areas where physical banking options may already be limited.
For credit unions, this creates both a challenge and an opportunity. In many cases we observed that ATMs in credit union branches experience higher cash withdrawal and deposit volumes compared to ATMs in other types of U.S. financial institution branches. As branch footprints evolve and in-person transactions decline, self-service channels absorb more of the demand. In many communities, fewer machines are serving more users, increasing pressure on existing infrastructure and introducing friction into everyday financial activity.
Rethinking the ATM strategy
While ATM placement has traditionally mirrored branch locations, transaction data can now provide a more precise way to identify where access gaps exist. High transaction volumes per machine can signal underserved demand, particularly in communities where consumers rely on cash for budgeting or small business activity. When access is limited, members may be forced to travel farther, pay out-of-network fees or turn to less trusted providers. These outcomes run counter to credit unions' mission of exceptional member service and financial inclusion.
Reevaluating ATM strategy through this lens allows credit unions to better align physical access with member behavior and needs. And expanding access doesn't have to require building new branches or large-scale infrastructure. Retail placements, community-based locations and participation in shared surcharge-free networks can extend reach efficiently while meeting members where they already are.
The Importance of Reliability and Affordability
Reliability and affordability also play a major role in whether access is meaningful. Access only works if machines are consistently available, easy to use and low-cost for consumers. Physical access should also be viewed alongside digital banking strategies, not separately from them. Mobile and online tools can help members locate ATMs, plan transactions and manage finances more effectively, but those tools still depend on a strong physical network underneath them.
For credit unions, this aligns closely with long-standing goals around financial inclusion and community support. Many of the communities experiencing the highest demand for cash access are also neighborhoods where credit unions have historically focused their efforts. Ensuring reliable access to financial services, including cash, remains an important part of serving those members and reducing friction in everyday financial activity.
Cash usage remains steady across income levels and communities, and members continue to rely on it for everyday transactions and as a dependable option alongside digital payments. What varies is access. Addressing that gap is not about preserving legacy infrastructure, but about responding to how members continue to manage their financial lives today and ensuring essential financial services remain within reach.
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